Q2 Holdings (NYSE: QTWO) reported Q1 EPS of $0.10, $0.02 better than the analyst estimate of $0.08. Revenue for the quarter came in at $116.52 million versus the consensus estimate of $115.32 million.

Non- GAAP Results for the First Quarter 2021

• Non-GAAP revenue for the first quarter of $117.0 million, up 25 percent year-over-year and up 7 percent from the fourth quarter of 2020.
• Non-GAAP gross margin for the first quarter of 52.6 percent, down from 53.1 percent for the prior-year quarter and up from 48.3 percent for the fourth quarter of 2020.
• Adjusted EBITDA for the first quarter of $9.9 million, up from negative $0.1 million for the prior-year quarter and $6.1 million for the fourth quarter of 2020.

“The first quarter was a strong start to 2021, with key developments across the business,” said Matt Flake, Q2 CEO. “We had broad-based sales success, with particular momentum in the Enterprise and Tier 1 segments. We demonstrated strong operational execution, highlighted by our banking-as-a-service team supporting the debit card launch of a top 10 fintech client. I’m encouraged by our momentum, and with our growing pipeline, improvements in the macroeconomic environment, and newly expanded product portfolio—including our acquisition of ClickSWITCH—I believe we’re in a great position to continue executing against our strategy for the remainder of 2021 and beyond.”

GUIDANCE:

Q2 Holdings sees Q2 2021 revenue of $122-123.5 million, versus the consensus of $118.83 million.

Q2 Holdings sees FY2021 revenue of $495-498 million, versus the consensus of $490.05 million.

As of May 5, 2021, Q2 Holdings is providing guidance for its second quarter of 2021 and revised guidance for its full-year 2021. The financial information below represents forward-looking, non-GAAP financial information, including estimates of non-GAAP revenue and adjusted EBITDA. GAAP net loss is the most comparable GAAP measure to adjusted EBITDA. Adjusted EBITDA differs from GAAP net loss in that it excludes items such as depreciation and amortization, stock-based compensation, acquisition-related costs, interest, income taxes, unoccupied lease charges, partnership termination charges, loss on extinguishment of debt and the impact to deferred revenue from purchase accounting. Q2 Holdings is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Q2 Holdings has not provided guidance for GAAP net loss or a reconciliation of the foregoing forward-looking adjusted EBITDA guidance to GAAP net loss. However, it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods.

Q2 Holdings is providing guidance for its second quarter of 2021 as follows:

• Total non-GAAP revenue of $122.0 million to $123.5 million, which would represent year-over-year growth of 23 percent to 25 percent.
• Adjusted EBITDA of $8.5 million to $9.1 million.

Q2 Holdings is providing updated guidance for the full-year 2021 as follows:

• Total non-GAAP revenue of $495.0 million to $498.0 million, which would represent year-over-year growth of 22 percent.
• Adjusted EBITDA of $32.0 million to $34.0 million, representing 6 percent to 7 percent of non-GAAP revenue for the year.
• For the full-year guidance, we expect estimated revenue contribution from ClickSWITCH of low-to-mid- single-digit millions and an adjusted EBITDA loss of low-to-mid- single-digit millions, in both cases recognized ratably over the next three quarters.

For earnings history and earnings-related data on Q2 Holdings (QTWO) click here.